BMI View: In 2014 Hungary underwent its first large scale 4G spectrum auctions, which saw nine blocksof bandwidth divvied up between four network operators. Alongside incumbents Telenor, T-Mobile andVodafone, the telecommunications regulator NMHH also licenced a new market player Digi. BMI believesthat while Digi's entrance will have a limited impact on the Hungarian mobile market, the auction will spur4G and mobile data usage growth. Meanwhile, in the wireline segment, it is believed that Mid EuropaPartners will sell its subsidiary Hungarian telephony and broadband operator Invitel within 2014, whichcould result in a decrease competition in the fixed-line market.
The most recent operator data show a total of 10.813mn mobile subscriptions in Hungary at the end ofSeptember 2014, equal to a penetration rate of 108.9%, with total subscriptions up by 0.7% y-o-y.
Meanwhile the mobile internet market is booming. NMHH reported a total of 3.095mn active mobileinternet subscriptions at the end of 2013, up 29%, making it the outperforming growth segment ofHungary's telecoms market.